Washington, DC – 43 State Legislators from Iowa, Kansas, and Montana, including Kansas’ Speaker of the House, along with the Chair of the Montana Senate Energy and Technology Committee, are taking a stand for ratepayers, sending formal letters to the Federal Energy Regulatory Commission (FERC) demanding rejection of a complaint filed by incumbent utilities seeking a five-year moratorium on transmission competition in the MISO and SPP regions. [1][2][3] These letters make clear that state leaders will not allow incumbent utilities to go around their backs to prevent competition to increase their profits and increase electric rates on captive consumers. Their collective action highlights widespread support across the country for protecting competition and holding utilities accountable. 

The complaint, filed by twelve incumbent utilities in April, would prevent utilities from having to compete to build new transmission projects in SPP and MISO for five years, raising electricity prices across 19 states. Without competition, a monopoly electric utility has zero incentives to reduce costs. The more they spend the more profit they make. The state letters stress that FERC should reject the complaint and enforce Order 1000, a federal policy that requires utilities to compete with one another to build new transmission lines, ensuring fair costs for consumers.

Paul Cicio, Chair of the Electricity Transmission Competition Coalition (ETCC), stated: “On behalf of consumers nationwide, we applaud these State legislators from three states that have made it clear that they support transmission competition because it reduces costs and assures accountability to deliver transmission projects on time. States are urging FERC to reject the utility complaint and uphold use of market forces that are unleashed via use of competitive processes. State lawmakers are standing up for ratepayers and rejecting monopoly power. FERC should do the same. We urge FERC to enforce Order 1000 and stop protecting monopoly utilities and start protecting consumers.”

Recent data shows that non-competitive transmission projects had an average cost overrun of 84 percent, while competitive projects that include cost containment provisions and delivery schedules were 38 percent under projected costs. [4]

The complaint, filed by utilities including: International Transmission Co; Michigan Electric Transmission Co; ITC Midwest; ITC Great Plains; Ameren Services; American Transmission Co; Cleco Power LLC; Entergy; Evergy Inc; Oklahoma Gas & Electric; Empire District Electric Company; and Xcel Energy, seeks to halt competitive transmission projects despite evidence that competition improves cost efficiency, schedule discipline, and accountability. 

The Electricity Transmission Competition Coalition supports the state legislators’ call for FERC to reject the complaint and uphold competitive transmission markets, protecting ratepayers and ensuring that electricity costs remain fair and transparent.

In April, twelve incumbent utilities petitioned FERC to prohibit transmission competition in SPP/MISO for five years which would increase electricity rates in 20 states. FERC should reject the complaint and enforce Order 1000, a common-sense federal policy that lowers transmission costs by requiring utilities to compete with one another to build new transmission lines.

Paul Cicio, Chair of the Electricity Transmission Competition Coalition shared the following statement, “The complaint illustrates that the utilities are completely insensitive to the affordability crisis. All they care about is increasing their profits. A monopoly utility has zero incentives to reduce costs without competition. In fact, fifteen recent projects that were not competitive saw an average cost overrun of 84 percent, costing consumers $4.8 billion.²” In a recent study of nineteen competitive transmission projects, competition reduced the costs of the projects on average by 38 percent, avoiding $4.9 billion in costs.³”